Starwood Capital has obtained a £27m five-year loan from Leumi UK, the London-based subsidiary of the Israel-based bank, to refinance development costs for the Grand Hotel in Birmingham.
The five-year facility will help finance both the opening and stabilisation costs of the 185-room hotel, which was acquired in 2017 by funds managed and controlled by Starwood. It is the city’s only five-star hotel.
The deal is Leumi UK’s first transaction with Starwood.
Stephen Welch, senior relationship manager for hotel finance at Leumi UK, said: “The fact we have been able to secure such a high profile new-to-bank client while we are still under lockdown is a real testament to the strength and hard work of our hotel finance team.
“While Covid-19 has caused temporary disruption to the hotel market, we remain confident in the long-term demand for high quality accommodation in city centre locations.”
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